Arbeitspapier

Bad times, bad jobs? How recessions affect early career trajectories

Workers who enter the labor market during recessions experience lasting earnings losses, but the role of non-pay amenities in either exacerbating or counteracting these losses remains unknown. Using population-scale data from Germany, we find that labor market entry during recessions generates a 6 percent reduction in earnings cumulated over the first 15 years of experience. Implementing a revealed-preference estimator of employer quality that aggregates information from the universe of worker moves across employers, we find that one-quarter of recession-induced earnings losses are compensated for by non-pay amenities. Purely pecuniary estimates can therefore overstate the welfare costs of labor market entry during recessions.

Sprache
Englisch

Erschienen in
Series: Working Papers ; No. 22-12

Klassifikation
Wirtschaft
Business Fluctuations; Cycles
Human Capital; Skills; Occupational Choice; Labor Productivity
Wage Level and Structure; Wage Differentials
Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
Thema
Earnings inequality
recessions
non-pay amenities

Ereignis
Geistige Schöpfung
(wer)
Mahajan, Parag
Patki, Dhiren
Stüber, Heiko
Ereignis
Veröffentlichung
(wer)
Federal Reserve Bank of Boston
(wo)
Boston, MA
(wann)
2022

DOI
doi:10.29412/res.wp.2022.12
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Mahajan, Parag
  • Patki, Dhiren
  • Stüber, Heiko
  • Federal Reserve Bank of Boston

Entstanden

  • 2022

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